What the Options Market Tells Us About Spotify Technology

Deep-pocketed investors have adopted a bearish approach towards Spotify Technology SPOT, and it's something market players shouldn't ignore. Our tracking of public options records at Benzinga unveiled this significant move today. The identity of these investors remains unknown, but such a substantial move in SPOT usually suggests something big is about to happen.

We gleaned this information from our observations today when Benzinga's options scanner highlighted 11 extraordinary options activities for Spotify Technology. This level of activity is out of the ordinary.

The general mood among these heavyweight investors is divided, with 9% leaning bullish and 72% bearish. Among these notable options, 9 are puts, totaling $654,385, and 2 are calls, amounting to $66,168.

Predicted Price Range

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $330.0 to $340.0 for Spotify Technology over the last 3 months.

Analyzing Volume & Open Interest

Assessing the volume and open interest is a strategic step in options trading. These metrics shed light on the liquidity and investor interest in Spotify Technology's options at specified strike prices. The forthcoming data visualizes the fluctuation in volume and open interest for both calls and puts, linked to Spotify Technology's substantial trades, within a strike price spectrum from $330.0 to $340.0 over the preceding 30 days.

Spotify Technology Call and Put Volume: 30-Day Overview

Largest Options Trades Observed:

About Spotify Technology

Spotify, headquartered in Stockholm, Sweden, is one of the world's largest music streaming service providers, with 602 million monthly active users at the end of 2023. The firm monetizes its users through a paid subscription model, referred to as its premium service, and an ad-based model, referred to as its ad-supported service. Revenue from premium and ad-supported services represented 86% and 14% of Spotify's 2023 total revenue, respectively.

After a thorough review of the options trading surrounding Spotify Technology, we move to examine the company in more detail. This includes an assessment of its current market status and performance.

Spotify Technology's Current Market Status

• With a trading volume of 695,326, the price of SPOT is up by 1.27%, reaching $341.66.
• Current RSI values indicate that the stock is may be approaching overbought.
• Next earnings report is scheduled for 64 days from now.

Expert Opinions on Spotify Technology

Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $416.8.

• Showing optimism, an analyst from Goldman Sachs upgrades its rating to Buy with a revised price target of $425.
• In a cautious move, an analyst from Benchmark downgraded its rating to Buy, setting a price target of $405.
• An analyst from Benchmark has decided to maintain their Buy rating on Spotify Technology, which currently sits at a price target of $430.
• Maintaining their stance, an analyst from JP Morgan continues to hold a Overweight rating for Spotify Technology, targeting a price of $425.
• An analyst from Rosenblatt has decided to maintain their Buy rating on Spotify Technology, which currently sits at a price target of $399.

Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest Spotify Technology options trades with real-time alerts from Benzinga Pro.